Traders are waging a nearly $1 billion bet against Lyft and still have lots of 'dry powder'

Justin Sullivan/Getty ImagesThe ride-sharing company has attracted short interest of nearly $1 billion in its rocky market debut.Traders have amassed a nearly $1 billion bet against Lyft and still have plenty"dry powder," according to a note out Thursday.since its initial public offering on March 28, with shares sinking more than 17% from their debut trade of $87.24.

. Borrow rates have since fallen from early trading to the 10-20% level as more shares have been lent out to shorts. In order to be short stocks in US markets, short-sellers are forced to"borrow" the stock from actual holders. Shorting without such borrowing, which limits the quantity of shares shorted, is controversial and known as"naked" shorting.

Of the 30 million shares of LYFT float, over 60% are now available to borrow, according to data compiled by Bloomberg. For this reason Dusaniwsky notes that short-sellers have plenty of"dry powder" should they choose to size up their positions just as borrow rates begin to decrease.within three months of their IPOs.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Rideshare giant Lyft went public today — and major investor GM could rake in $1.3BGM was originally seen as hedging its bets when it made its Lyft investment, teaming up with a company that could wind up buying millions of its vehicles in the years ahead. Bad buy stay away $20 billion is too much for such company but I might be wrong Woah 🚀🚀🚀
Source: NBCNews - 🏆 10. / 86 Read more »

Japan's Nomura to cut $1 billion costs to revive wholesale business, shut branchesJapan's Nomura Holdings said on Thursday it would cut $1 billion in costs f...
Source: Reuters - 🏆 2. / 97 Read more »

The gender pay gap can add up to a $1 million shortfallWomen typically earn less than men and take more time out of the work force, which has a significant impact on their lifetime earnings. “Much of the gap has been explained by criteria such as education and work experience — women are more likely to work part time and take time off over the course of their careers, often to care for children or other family members, according to the Pew Research Center.” Wrong. We know you want more women voting liberal so you help perpetuate the myth for the pandering democrats. Though I'm not really sure what it gets you. When they gain control and control your message, you aren't going to be part of the ruling elite. You'll be replaced. intelligence is intelligence no matter who withholds it. It is tragic that physical traits or identities affect how much this intelligence is rewarded, rather than how it is being applied to help society. Follow WashAbstract to see what our government is doing about it EqualPay
Source: CNBC - 🏆 12. / 72 Read more »